Most recent article: India Gold price today: Gold rallies, according to MCX data
Gold prices fell in India on Friday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 69,368 Indian Rupees (INR) per 10 grams, down INR 277 compared with the INR 69,645 it cost on Thursday.
As for futures contracts, Gold prices decreased to INR 69,661 per 10 gms from INR 69,707 per 10 gms.
Prices for Silver futures contracts decreased to INR 79,425 per kg from INR 79,984 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 71,860 |
| Mumbai | 71,565 |
| New Delhi | 71,510 |
| Chennai | 71,920 |
| Kolkata | 71,725 |
Global Market Movers: Comex Gold price Gold price cushioned by persistent geopolitical tensions
- Federal Reserve officials took a cautious approach in comments on the outlook for possible interest rate cuts this year, which, in turn, prompts some profit-taking around the Gold price.
- Richmond Fed President Thomas Barkin said that he was open to interest rate cuts once it is clear that progress on inflation will be sustained and applied more broadly in the economy.
- Minneapolis Fed Bank President Neel Kashkari said that he penciled in two rate cuts this year at the March meeting, though none may be required if inflation continues to move sideways.
- The hawkish comments keep the US Treasury bond yields elevated, which assists the US Dollar in building on the overnight bounce and further exerts pressure on the non-yielding yellow metal.
- Geopolitical tensions in the Middle East ratcheted up amid persistent fears that an Iran retaliatory strike against the Israeli attack on its embassy in Syria earlier this week could be imminent.
- This, along with the protracted Russia-Ukraine war and a devastating earthquake in Taiwan, continues to weigh on investors' sentiment and should lend support to the safe-haven XAU/USD.
- Investors now look to the US monthly jobs report, which is expected to show that the economy added 200K jobs in March vs the 275K previous, and the unemployment rate held steady at 3.9%.
- Apart from this, the Average Hourly Earnings will influence market expectations about the Fed's rate-cut path, which, in turn, will drive the USD and provide a fresh impetus to the commodity.
(An automation tool was used in creating this post.)
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
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